Author:Degol Hailu
Subject: Macroeconomic Policies
" /> Abstract: Rich countries have earmarked about $7 trillion to reverse the current global economic slump. The United States allotted $700 million to rescue ailing banks. About $180 billion was used to rescue just one insurer (AIG). A $787 billion stimulus package is also in place. The United Kingdom set aside $692 billion. The Chinese announced a $586 billion fiscal stimulus. Monetary policy has also become expansionary. The US and the UK cut interest rates to zero per cent and 0.5 per cent, respectively. Can low-income countries embark on such expansionary fiscal and monetary policies? Unfortunately not, as the case of Ethiopia demonstrates

keywords: The Rich Expand, the Poor Contract. The Paradox of Macroeconomic Policy in Ethiopia
Date Publication: 03/06/2009 (All day)
Type/Issue: One Pager / 78
Language: English